journal entries

received a bill for $320 from the local gas station for additional gasoline purchased on account and used in April

Fuel expense debited $320 and accounts payable credited $320

What 3 steps are there before you can put your transactions on a balance sheet?

Journal entries, T-accounts, Trial balance

interest incurred but not yet paid should be recorded as an expense and a ________

Liability

target paid $1800 for 6 months of insurance, what are 3 journal entires that will occur?

debit prepaid insurance 1800 on sept. 1 then after one month of using the insurance you'll credit prepaid insurance and debit insurance expense for $300 because the insurance is now being used.

purchased $300 of insurance covering six months, april through september

debit prepaid insurance and credit cash $300

Recieved 1,600 cash from the city in advance for lawn maitenance service for April through July. ($400 each month)

debit to cash of 1600 and credit to unearned revenue of 1600

Purchased and used gasoline for mowers and edgers with $90

debit to fuel expense and credit to cash.

a closing entry will include

debit to sales revenue

The deferral adjustment to record the amount of unearned service revenue that is now earned includes what journal entry

debit to unearned revenue and a credit to service revenue

when a buissnes pays its rent in advance, what happens to the balance sheet and income statement?

prepaid rent is decreased on the balance sheet and rent expense is increased on the income statement

what accounts are on the income statement

revenue and expenses and net income

ABC company had a beginning inventory of 20000, purchases of 81000 and ending inventory of 24000 sales revenue was 160000 what was the gross profit percentage

revenue- cost of goods sold/ revenue. (cost of goods sold = purchases+beginning inventory - ending inventory)

paid wages every two weeks total cash paid in april was 3900

salaries and wages payable debited 3900 and cash credited 3900

what are the effects on the accounting equation from the adjustment for income tax expense accrued but not paid at the end of the accounting period?

total liabilities will increase and stockholders equity will decrease

what are the effects on the accounting equation from the adjustment for salaries and wages incurred but not yet paid during the accounting period

total liabilities will increase and total stockholders equity will decrease

what happens if a busines recieves cash before the revenue is earned on the balance sheet and income statement.

unearned revenue on balance sheet is decreased and revenue is increased on the income statement

accural adjustments

when cash is paid after an expense is incurred or when cash is recieved after a revenue is earned

defferal adjustment

when the buisness pays cash before the expense is incurred or when the business recieves cash before revenue has been earned

the adjusting entry to record services earned but not yet billed requires what journal entry

a debit to accounts recievable and credit to service revenue

the adjustment needed when cash is paid after an expense is incurred

a liability on the balance sheet goes up and a expense on the income statement goes up

Mowed lawns for residential customers who are billed every two weeks. A total of $5200 of service was billed and is to be recorded in April.

accounts receiveable debited 5200 and service revenue credited 5200

what is the adjusting journal entry needed to acrue service revenue. (cash recieved after a revenue is earned)

an asset on the balance sheet goes up (accounts receivable) and a revenue on the income statement goes up (service revenue)

what accounts are on the balance sheet

assets, liabilities and stockholders equity

residential customers paid $3500 on their accounts

cash debited 3500 and accounts recievable credited 3500